• Skip to primary navigation
  • Skip to main content
  • Skip to footer

FinanceJar

FinanceJar

Take the next step on your journey

  • Credit Scores
    • Get Free Credit Score
    • Get Your Free FICO Score
    • Credit Score Range
  • Credit Repair
  • Credit Reports
    • Credit Inquiries
  • Debt
    • List of Collection Agencies
  • Loans
  • About Us

Home Debt Time-Barred Debt: What It Is and How To Handle It

Time-Barred Debt: What It Is and How To Handle It

Alarm clock with ball and chain representing time-barred debt

At a glance

When a debt is time-barred, it’s old enough that creditors and debt collectors can’t legally sue you over it. Find out how to determine whether a debt is time-barred and what to do if you’re contacted about one.

Speak with our credit specialists today and start your path towards a better credit score.

Call (855) 764-0034 Tap to Call

Specialists available Monday to Friday, 10AM - 8PM EST.

Written by Jessica Norris and Jesslyn Firman

Reviewed by Robert Jellison

Oct 25, 2021

Fresh advice you can trust

We promise to always deliver the best financial advice that we can. Our writers and editors follow strict editorial standards and operate independently from our advertisers and affiliates. Learn more about how we make money.

Table of Contents

  1. What is time-barred debt?
  2. How long can a debt collector legally pursue old debt?
  3. What should you do if a collector asks you to pay time-barred debt?
  4. What to do if you’re sued for time-barred debt
  5. Can I sue creditors for trying to collect time-barred debt?

What is time-barred debt?

Time-barred debt is debt that collectors can no longer sue you for. Debt reaches this state after a certain number of years. When this happens, the debt is said to have passed its “statute of limitations,” which is a time limit on how long creditors are allowed to file lawsuits over unpaid debt. 1 2

Your debt won’t necessarily be erased once the statute of limitations expires. In most cases, you still owe time-barred debts, and they can still appear on your credit report—your creditor or debt collector just has less power to compel you to pay them. 1 3

When does the statute of limitations on debt begin?

In some states, the time limit on the statute of limitations is counted from your first missed payment towards your debt. In other states, it’s counted from the most recent payment you made. 2

There are several ways that you can accidentally reset the statute of limitations, which vary from state to state. In most states, it will reset if you make a partial payment or acknowledge in writing that you owe the debt. 1 4

Doing any of the following can also reset the statute of limitations:

  • Accepting a debt settlement offer
  • Starting a payment plan
  • Agreeing to pay off some of the debt
  • Making a new charge on the credit account in question (in the event that your creditor hasn’t closed the account yet)

If you’re not sure whether your debt is time-barred or not, check with a lawyer to find out exactly when the statute of limitations started and how to avoid resetting it. 5

How long can a debt collector legally pursue old debt?

How long a debt collector can legally pursue old debt depends on the state you live in and whether they’re threatening legal action to do so.

In almost all states, debt continues to exist even after the statute of limitations renders it time-barred. It’s legal for debt collectors to keep contacting you about time-barred debts by mail or by telephone in nearly every state (except Mississippi and Wisconsin). 3 6

However, regardless of whether your state allows debt collectors to contact you after the statute of limitations expires, they cannot take (or threaten to take) legal action to collect time-barred debts.

What determines a debt’s statute of limitations?

The statute of limitations on debt can vary widely. It’s often between 3 and 6 years, but it can be as long as 15 years in some states. 3

The statutes of limitation for a given debt depends on: 5

  • What type of debt it is
  • The state you live in (if you’ve moved, your current state is the one that’s relevant, not the state where you originally incurred the debt)
  • What state law (if any) was mentioned in your credit agreement

The statute of limitations can also be affected by the specific terms in the contract you signed with your creditor.

You can contact your state Attorney General’s office to find out about the statute of limitations where you live. Because it depends on many factors, be as specific about your debt as you can when you contact them.

What should you do if a collector asks you to pay time-barred debt?

If a collector asks you to pay a time-barred debt, before doing anything else, exercise due diligence by asking them for written verification. There’s always a chance that they have the wrong number or are confusing you with someone else.

The collector is required to send you a debt validation letter within five working days after they contact you about the debt. This letter should include the amount of money you owe, the date of your last payment, information about the collector and creditor, and steps for you to take if you don’t believe it’s your debt.

What are zombie debt collectors?

Zombie debt collectors specialize in trying to collect old debts. In addition to time-barred debts, these may include debts you’ve already paid, that you discharged in bankruptcy, or even debts you never owed in the first place (e.g., ones resulting from identity theft). Don’t agree to pay zombie debt—check whether it’s time-barred and ask the collector to validate it.

Once you’ve received a debt validation letter from your debt collector, you have four options:

1. Ignore the debt

You can’t be sued over a time-barred debt. This means you can ignore it since your debt collector has no way to compel you to pay.

However, they might continue trying to collect the debt by phoning you or sending you letters or emails. As mentioned, they can legally do this in every state but Mississippi and Wisconsin.

They may also resell your old debt to another debt collection agency as long as it hasn’t been extinguished. 7

The upshot is that, while you’re free to ignore your debt, you may continue to receive phone calls and letters about it—potentially for years. If that’s unacceptable to you, you need to pursue one of the alternative methods of dealing with it.

2. Dispute the debt

If a creditor or collector contacts you about debt (time-barred or otherwise), you can dispute the item on your credit report if you believe:

  • It belongs to someone else
  • You already paid it off
  • It’s fraudulent or the result of identity theft
  • It’s invalid for any other reason

If you intend to dispute the debt, you must do so within 30 days of the debt collector contacting you. After that, they can legally assume that the debt is valid, and challenging it will become much harder. 8

To dispute a debt, you should write directly to the creditor or collector. Your letter must state why you believe the debt is invalid, and you should ask for verification of the debt. Provide any documentation that you have proving that you don’t owe it.

Does disputing a debt restart the statute of limitations?

No, disputing a debt doesn’t restart the statute of limitations. In most states, the statute of limitations resets if and when you make a payment towards the debt or acknowledge that you owe it.

3. Repay the debt

The major advantage of repaying your time-barred debt is that you won’t have to deal with debt collectors bothering you any longer. (And depending on the circumstances that led to you incurring the debt, paying it might clear your conscience.)

If you decide to go ahead and repay a time-barred debt, you need to be careful. If you make a partial payment, the debt will become active again, and your debt collector will be able to sue you for the remaining amount. 5 9

Make sure things are clear between you and your creditor about your payment plan. Get a written agreement before you make your first payment specifying:

  • Exactly how much you’ll pay
  • That your debt collector will forgive the entire debt immediately after receiving payment

Without getting an agreement like this in writing, the collector may later decide to pursue you for the remaining amount, or even sell it to another debt collection agency.

Settling your debt by making a partial payment

In addition to the original sum of money that you borrowed, old debts accumulate collection fees and penalties as permitted by the law or the original contract you signed. 1

If you decide to repay the debt, you don’t necessarily have to pay the full amount that you owe. Your debt collector may be willing to forgive the debt in return for a partial payment. This is known as debt settlement (or, in the case of credit card debt, as credit card debt forgiveness).

Be aware that even after paying your debt, it will remain on your credit reports, which means that repaying might not directly benefit your credit score. In fact, debt settlement can actually damage your score because the credit bureaus (and the scoring companies, FICO and VantageScore) want to incentivize people to pay off their debts in full.

Whether you make a partial or full payment, think carefully about whether repaying your time-barred debt is the right choice.

4. Declare bankruptcy

If you want to stop companies from chasing you over time-barred debt but you’re financially struggling and have no way to pay them, you can declare bankruptcy. This will end their debt collection efforts.

However, bankruptcy is an extreme measure. It leaves a negative mark on your credit report and significantly lowers your credit score. 10 11

In most cases, declaring bankruptcy over time-barred debt isn’t worth it. However, if you declare bankruptcy for other reasons (e.g., you have other, more recent debts that you’re trying to get discharged), your time-barred debts may also be cleared.

If you do choose to declare bankruptcy, make sure you know the difference between chapter 7 and chapter 13 bankruptcy and understand how long bankruptcy will remain on your credit report.

What to do if you’re sued for time-barred debt

Legally, collectors cannot sue you for a time-barred debt. However, they still might try.

Whatever you do, don’t ignore their lawsuit summons, even if you know that the debt is past the statute of limitations. Failing to respond could lead to an automatic judgment against you. 12

If this happens, the money you owe could be taken through measures like wage garnishment, and you might no longer be able to dispute the debt. In a worst-case scenario, you might even be held in contempt of court for failing to appear, which is one of the few remaining ways that you can be sent to jail over debt.

Respond quickly to any notices you receive, and consider contacting an attorney. If the case goes to court, be ready to provide documents proving that the debt is time-barred. This should get the case thrown out.

Can I sue creditors for trying to collect time-barred debt?

Yes, you can sue creditors if they try to sue you for time-barred debt. Doing so is prohibited by the Fair Debt Collection Practices Act (FDCPA). 13

You can also sue debt collectors if they violate your rights, abuse you, or harass you while trying to collect the debt. 14

If you think that you’ve been a victim of unfair or unlawful debt collection practices, you can file a complaint with the Federal Trade Commission, the Consumer Financial Protection Bureau, or your state Attorney General’s office.

Takeaway: You can’t be sued over time-barred debt, but you usually still owe it

  • Time-barred debts are debts that have passed the statute of limitations, meaning that you’re no longer legally obliged to pay them.
  • Creditors and debt collectors are not legally allowed to sue you for time-barred debt.
  • However, in most states, you do still owe time-barred debt. Collectors are allowed to contact you about it, both over the phone and in writing.
  • If you’re asked to pay a time-barred debt, your options are to ignore the debt, dispute it, repay it, or declare bankruptcy.
  • If creditors or debt collectors try to harass you or sue you, you can file a complaint against them or even sue them.

Article Sources

  1. Federal Trade Commission. "Debt Collection FAQs" Retrieved October 25, 2021.
  2. Consumer Financial Protection Bureau. "What is a statute of limitations on a debt?" Retrieved October 25, 2021.
  3. Consumer Financial Protection Bureau. "Disclosure of Time-Barred Debt and Revival" Retrieved October 25, 2021.
  4. Consumer Financial Protection Bureau. "Debt Collection December 2020 Final Rule (Regulation F)" Retrieved October 25, 2021.
  5. Consumer Financial Protection Bureau. "My debt is several years old. Can debt collectors still collect?" Retrieved October 25, 2021.
  6. Federal Trade Commission. "Repairing A Broken System: Protecting Consumers in Debt Collection, Litigation and Arbitration" Retrieved October 25, 2021.
  7. Federal Trade Commission. "The Structure and Practices of the Debt Buying Industry" Retrieved October 25, 2021.
  8. Consumer Financial Protection Bureau. "If I dispute a debt that is being collected, can a debt collector still try to collect the debt from me?" Retrieved October 25, 2021.
  9. Consumer Financial Protection Bureau. "What is the best way to negotiate a settlement with a debt collector?" Retrieved October 25, 2021.
  10. Department of Justice. "Bankruptcy Information Sheet" Retrieved October 25, 2021.
  11. myFICO. "Considering Bankruptcy" Retrieved October 25, 2021.
  12. Consumer Financial Protection Bureau. "What should I do if a creditor or debt collector sues me?" Retrieved October 25, 2021.
  13. Federal Trade Commission. "Fair Debt Collection Practices Act" Retrieved October 25, 2021.
  14. Consumer Financial Protection Bureau. "What is an "unfair" practice by a debt collector?" Retrieved October 25, 2021.

Jessica Norris

Credit Cards Editor

View Author

Jessica Ginter-Norris writes for FinanceJar. She has previously worked in academic editing, web content editing, and math e-learning content writing. She continues to be involved in various writing and editing projects as well as doing editorial training with the Chartered Institute of Editing and Proofreading.

Jesslyn Firman

Credit Analyst

View Author

Jesslyn Firman is a credit analyst for FinanceJar. Her work covers credit repair and credit scores, and in the past she's extensively researched and written about the insurance industry. Jesslyn has a B.S. in Finance and Accounting and an MBA in Management.

Related Articles

Debt Verification Letter Template
Debt

Jan 6, 2022

Debt Verification Letter Template: Free Download & How to Write

If a debt collection agency contacts you about a debt, you can send...

Jessica Norris
Two people playing tug of war with a bag labeled collections
Debt

Jun 9, 2022

The Complete Guide to Disputing Collections: How to Dispute Your Debt (And Win)

If debt collectors are asking you to pay a debt, then you have the...

Victoria Scanlon
Debt validation letter next to a stamp
Debt

Apr 29, 2022

Debt Validation Letter: What It Is and Why You Need to Receive It

Debt validation is proof that you owe a particular debt. Debt...

Jesslyn Firman
Scale of justice next to the Fair Debt Collection Practices Act
Debt

Nov 25, 2021

What Is the Fair Debt Collection Practices Act (FDCPA) and How Does It Work?

The FDCPA is a law that protects borrowers from predatory debt...

Renée Chen
Clock representing how long a debt collector can pursue old debt
Debt

May 9, 2022

How Long Can a Debt Collector Legally Pursue Old Debt?

The amount of time that debt collectors have before they can no...

FinanceJar Team
debt settlement letter template
Debt

Jan 14, 2022

Debt Settlement Letter Templates: Free Downloads & How to Write

If you have debts that you can't pay in full, you can use a debt...

Mark Slack
FinanceJar

Footer

Credit

  • Credit Scores
  • Credit Repair
  • Credit Reports
  • Debt

Company

  • About Us
  • Contact Us

Legal

  • Terms & Conditions
  • Privacy Policy

How We Make Money

We make money from advertising. We place links on our website to our affiliates, and when you click those links, our affiliates compensate us for it. Our relationships with our affiliates may affect which products we feature on our site and where these products appear in our articles.

Facebook Twitter Instagram TikTok YouTube LinkedIn Pinterest

© 2023 – ONR Financial Networks LLC – All Rights Reserved.

  • Credit Scores
    • Get Free Credit Score
    • Get Your Free FICO Score
    • Credit Score Range
  • Credit Repair
  • Credit Reports
    • Credit Inquiries
  • Debt
    • List of Collection Agencies
  • Loans
  • About Us

We hope this template helps you achieve your goals.

Would you please review us?

A review would mean a lot to us — and takes less than 20 seconds. Let us know what you think. Thanks!

Leave My Review

What you’ll get

  • Assess

    Fill in your information and we will securely pull your TransUnion credit report.

  • Address

    We challenge inaccurate negative items with the bureaus and your creditors.

  • Advise

    We will give you advice for how you can improve your credit. Don’t want to wait? Call us now.

Don’t want to wait? Call us!

Monday to Friday, 10AM - 7PM EST

FinanceJar

Get a FREE 5-minute credit consultation.

Get a credit improvement plan that works for you with 1 phone call.

What you’ll get

1
Assess

Fill in your information and we will securely pull your TransUnion credit report.

2
Address

We challenge inaccurate negative items with the bureaus and your creditors.

3
Advise

We will give you advice for how you can improve your credit. Don’t want to wait? Call us now.

This is completely secure and won’t hurt your credit score.

By clicking "Submit" I agree by electronic signature to: (1) be contacted about credit repair or credit repair marketing by a live agent, artificial or prerecorded voice and SMS text at my residential or cellular number, dialed manually or by autodialer, and by email (consent to be contacted is not a condition to purchase services); and (2) the Privacy Policy and Terms of Use.

Don’t want to wait? Call (888) 859-0871 now

FinanceJar

Advertising Disclosure

Some of our articles feature links to our partners, who compensate us when you click them. This may affect the products and services that we showcase in our articles and how we place and order them. It does not affect our evaluations of them, which our writers and editors create independently, without considering our relationships with our partners.

FinanceJar

Editorial Standards

We promise to always deliver the best financial advice that we can. That’s our first priority, and we take it seriously.

To ensure that our articles and reviews are objective and unbiased, our writers and editors operate independently from our advertisers and affiliates. Our writers do not take FinanceJar’s relationship with its affiliates into consideration when writing their reviews and articles.

Everything we publish is as accurate and as complete as we can make it. All of our articles undergo several rounds of fact-checking before we publish them, and we do our best to keep them as no-nonsense and jargon-free as possible while still delivering the information that you need.

We know that taking financial advice from us requires a lot of trust on your part. We’re grateful for that trust, and we won’t abuse it. Learn more about our editorial standards.

FinanceJar

How We Make Money

FinanceJar partners with other companies in the credit and finance industry, such as credit card issuers and credit repair companies.

We make money through advertising. Our pages feature links to our partners’ websites. If you click on one of those links, we get paid.

The links to our partners are always clearly marked. You’ll always be able to tell what you’re clicking. We’ll never try to trick you into clicking anything you’re not genuinely interested in.

That’s the only way that we make money. We don’t accept compensation in exchange for reviews or articles, and we don’t directly sell any products or services ourselves. Our editorial team operates independently (with no influence from our affiliates or our advertising team) so as to avoid compromising the objectivity of our reviews. Learn more about how we make money.